SIA sees net profit plunge in Q3

Singapore Airlines’ revenue for third quarter of 2014 (3Q 2014) was flat at S$3.9 billion (US$3.1 billion) compared to the previous year while operating profit was $151 million, 15.3 per cent higher, year-on-year.


SIA sees net profit plunge in Q3


Singapore Airlines’ revenue for third quarter of 2014 (3Q 2014) was flat at S$3.9 billion (US$3.1 billion) compared to the previous year while operating profit was $151 million, 15.3 per cent higher, year-on-year. However, net profit was $50 million, a plunge of $93 million or 65 per cent, compared to 3Q 2013. SIA Cargo reported an operating profit of $1 million during the seasonal peak in the third quarter, supported by ongoing efforts to better match capacity with demand.

Higher passenger carriage was offset by weaker yields and this brought about flat revenue for the quarter.

Net profit dropped dramatically mainly due to exceptional items of $80 million with regards to SIA Cargo (SIA Cargo reached a settlement with the plaintiffs in the previously disclosed US Air Cargo Class Action for an amount of $78 million and a provision of $2.3 million for fine imposed by the Swiss Competition Commission in the Swiss air cargo competition law case) and share of losses and one-off items from associated companies, mainly Tiger Airways Holdings Limited. Stripping off the exceptional items and impairment losses from Tiger Airways, the net profit would have improved by $33 million or 23.1 per cent year-on-year.